Generally speaking, garments, accessories, jewelry, watches, fragrances and cosmetics are considered to be constituent parts of the luxury market. The U.S. luxury goods market has continued to soar to post-crisis heights in 2014, with its fifth year of growth. Globally, luxury goods sales are expected to exceed 220 billion euros by 2014. In terms of value, the four biggest markets are the United States, Japan, Italy and China, collectively accounting for almost half of total luxury goods sales.
One weak spot for luxury goods, however, has long been online retailing, with luxury consumers not only wanting the product but also the in-store experience to go with it. E-boutiques are still very much a developing market channel; expect online luxury retailing to see long-term growth as luxury brands use it to access new markets.
New markets and segments are giving the industry growth points. One challenge for luxury companies is to maintain brand equity and cultivate on their customer relationships. As luxury expands into more industries expect a more mature segmented market. As a result, consumers should also become more rational.